My method of trading, 360 trading, involves the use of a combination of Forex Trading techniques to trade the Forex market. I analyse the market from all angles both technical and fundamental then base my entry on the activity of the smart money.
I use pattern analysis, harmonics, Elliot wave combined with my method of VSA while keeping in mind the sentiment and fundamental outlook of each currency. I call this 360 trading because it involves a circular approach to trading, trading with the view that all are connected. Below is an example of one of the techniques I use to trade
Audusd 1H Elliot wave analysis
As you can see from the image above we have a zigzag ABC pattern about to be completed.
There is a high probability that price will pull back after the completion of this pattern. Now Elliot wave analysis can be very subjective at times, so its good if you can identify more than one possible wave count, as long as you stay within parameters of the rules. If you're prepared for more than one possible wave count then you'll have an higher probability of being right and benefiting from the Elliot wave theory.
Below is another possible wave count for the Audusd 1h we can call this count B
With the wave count above we can see 3 waves up and a potential 4th wave in formation. Now both wave counts this one and the one above it are signalling that the Audusd will fall, the only difference is that with count B (the one above) its is signalling only a small pullback for the Audusd, a pullback to around where the gray rectangle is, while the very first wave count is signalling a larger fall in the Audusd.
With my method of trading, analyzing the wave count alone would not be enough for me to go and place the trade, remember my method involves a combination of techniques. I would then need to analyse the trade from a fundamental stand point, identify the current market sentiment for the Audusd and then check for signs of smart money entering the market etc
Below is another means of analyzing the market that I would also employ and this is pattern analysis. Looking at the image below you can clearly see a potential cup and handle pattern in formation or a potential [B]head and shoulder[/B] pattern in formation. Both patterns bolster the notion of a pending fall in the Audusd, last but not least always practice proper money management because it matters not how good or perfect your analysis is, you can still be wrong.